Towards the Balanced Growth

Business development is to contribute to the achievement of socially balanced growth economy, which arises from the important role of SME. And local government is to facilitate and activate entrepreneurs and to create more jobs.

In early 2002 Tallinn has enacted the strategy of "Entrepreneurship Development Program of Tallinn for 2002-2004" which is a basis for both direct financial incentives provided by Tallinn City Enterprise Board (50 employees) to startups and small companies, as well as more comprehensive economic, innovation and cluster development projects initiated in co-operation with different social partners.

Financial incentives and advisory support to start-ups and small firms. Since May 2002, Tallinn City Enterprise Board has provided 71 start-up grants to companies for the total amount of 4.4 mil EEK (ca 281 200 EUR), supported training in Tallinn and abroad. 14 companies have received support to take a young trainee for an internship period.

As financial incentives are limited, advisory and training support is offered by the consultants of Tallinn City Enterprise Board. Since September 2001 over five thousand companies and sole proprietors have received free of charge advice on different development matters (funding possibilities, business plan, taxes, etc). 2,700 companies of the capital have participated in different training and information days.

Development of business incubation network in Tallinn. One of the ways the city can support new businesses is to provide a synergy of infrastructure and the so called soft support - advice and training. Between 2002-2004 Tallinn aims to open up 4 business incubators, 2 of which are already currently operating. An incubator for technology and knowledge based firms is located in the area of Tallinn Technical University. Another one was established in May 2003 in Dvigatel industrial area near the airport.

EU co-funding to business development. Tallinn City Enterprise Board initiates and actively takes part in the projects co-funded by the EU. The Board has been successful in receiving grants from Leonardo da Vinci n to improve and develop qualified labour force (development of sector co-operation network between universities, vocational schools, companies and support organisations). Phare CBC and Interreg IIIA have funded cluster development and training project targeted at companies from metal engineering, electronics and machinery sectors; and science and innovation-orientated business. Co-operation between Tallinn and Helsinki is also supported by Interreg HIA Programme.

by Toomas Vitsut, Deputy Mayor